FY03/22
Financial Results Briefing for the
Fiscal Year Ended March 31, 2022

Wednesday, May 11, 2022
TOKAI Holdings Corporation(Code No. 3167)

Summary of Consolidated Financial Results for
Fiscal Year Ended March 31, 2022 andProgress of Medium-Term Management Plan

TOKAI Holdings
Katsuhiko Tokita, President & CEO

1

Summary of Consolidated Financial Results for
Fiscal Year Ended March 31, 2022

2

Summary of Consolidated Financial Resultsfor Fiscal Year Ended March 31, 2022
Net sales reached 210.7 billion,
surpassing the 200 billion yen mark.
 The figure represented a new record high for the fourth consecutive fiscal year, despite the negative impact of the application of
the Accounting Standard for Revenue Recognition.
 In addition to increases in the number of customers and in selling prices in line with the energy purchase prices and expansion of
the Information and Communications business for corporate clients, M&A in the Construction, Equipment, and Real Estatebusiness contributed to the growth.

Operating profit hit a record high at 15.8 billion yen.
 Expenses for winning customers soared, reflecting the fact that such activities were carried out at a more intensive pace than in
the previous fiscal year.
 This rise was more than offset by profit increases associated with growth in customer numbers, as well as in the Information andCommunications business for corporate clients. The figure rose 0.6 billion yen year on year to achieve a new record high for the
fourth consecutive fiscal year.

Core businesses saw an expansion
新中期経営計画
in continuing customer numbers
IP24“Design the Future Life” 公表 The continuing customer count reached 3,194,000, up 95,000 from 3,100,000 at the beginning of the year The number of TLC members topped 1 million, rising 107,000 to 1,086,000

3Consolidated Financial Forecast
for Fiscal Year Ending March 31, 2023

4

Consolidated Financial Forecast
for Fiscal Year Ending March 31, 2023
Net sales are forecast to increase 12.3 billion yen, or 5.8% year on year, to reach a new record high for the fifth consecutive fiscal year.
This is chiefly attributable to growth in customer numbers and increases in orders received from corporate clients in the Information andCommunications business and in the Construction, Equipment and Real Estate business.

Operating profit is expected to fall 1.3 billion yen year on year, taking into account an impact of 5.1 billion yen from rising LP gas purchaseprices.



The LP gas business will continue to drive the active attraction of customers on the basis of pricing measures that will maintain pricecompetitiveness.

The number of customers in the overall Group will rise 100,000 from 3.19 million at the end of the previous fiscal year, to 3.30 million.
(100 million yen)

YoY

From Plan IP

FY03/23
forecast

FY03/22
results(FY2022)(FY2021)

2,230

2,107

+123

+5.8

2,210

+20

+0.9

Operating profit

145

158

-13

-8.2

156

-11

-7.1

Recurring profit

143

159

-16

-10.1

－

－

－

Net income

83

90

-7

-7.5

90

-7

-7.8

3.30

3.19

+0.1

-0.02

millionmillion

+3.2

3.32

millionmillionmillion-0.6
5

Net sales

Customer count at
end of fiscal year

Change% change(%)

Plan IP24(FY2022)

Change% change(%)

Progress of IP24 "Design the Future Life"

6

Announcement of new Medium-Term Management Plan,
IP24 "Design the Future Life"

April 2021 10th Anniversary of Start ofOperations under Holding Company StructureFirst Step Towards Next 10 Years

May 2021

New Medium-Term Management Plan
Announcement ofIP24 "Design the Future Life"
7

Future Vision of the Group The environment surrounding businesses is changing dramatically, with lifestyle changes associated with COVID-19,
global pressure to contribute to the SDGs, the trend towards clean energy, and digitalization.
 In response to these environmental changes, the Group aims to become a Life Design Group (LDG), a corporategroup that continues to grow sustainably and create people’s lifestyles over the next 10 years.

Environmental changes
Lifestylechanges associatedwith COVID-19

Global pressure tocontribute to SDGs

Trend towardclean energy

Digitalization

A corporate group that continues to grow sustainably
and create people’s lifestyles

The Group ten year vision

Life Design Group

8

Past Efforts towards LDG
 Towards the LDG, the Group has expanded services for enriching lifestyles in addition to the infrastructure
essential to life.

LeisureAoi-bune (Aoi boat)
Touring the moat around
Sumpu Castle
The tour gives you a viewof the magnificent Sumpu
Castle ruin combined withthe cityscape of Shizuoka.

Food trucks
Meals prepared byleading chefs areprovided at offices
and event venues.

Healthcare
FitnessYoga

A gym specializing
in machine exercise
will commence 24hour operation.

A trial workshop
was held on thegrass of the Sumpu
Castle Park.

PULCLEA bicycle sharing
service is operated
as a new transportsystem in Shizuoka.

Delivery service

Laundromat

The service delivering items handled
by the JA Group's Mansaikan as well
as frozen food, high quality breadand other products meets thedemand of elderly people and others
without access to supermarkets, aswell as the need for time saving offamilies raising children.

A laundromat will belaunched inside theshowroom.

Life Support

9

Ideas of Attractive Life-Related Services in LDG
 Start consideration from the perspectives of life support, disaster control, tourism and other aspects to make further
strides towards the LDG☛ Childcare support and job
opportunities for elderly workers

Life Support☛ Workstyle support
including workcations☛ Babysitters

Tourism☛ Local sports

From offering foundations for lifestyles
to designing and suggesting lifestyles☛ Vacation rentals that takeadvantage of local attractions☛ Disaster control
services

Disaster Control

10Addressing TOKAI Group Material Issues
 Solidify the foundations for creating services from new perspectives with a focus on 10 years from now and with aview to the LDG
 Give deeper consideration in accordance with an idea of eventually achieving continued local development andattracting people and families

Building foundations
for creating services

2030

Life Design
Group

TOKAI Group Material Issues
2022
2021

Take on challenges in pursuit ofachieving carbon neutrality by 2050.

❷ Building a smart society
Create people’s lifestyles throughDX and collaborative creation.

-2020

An idea of eventually achieving continued
local development mainly in Shizuoka andattracting individuals and families☛ Childcare support and job
opportunities for elderly workers☛ Disaster control☛ Workstyle support including
workcations❶ Decarbonization andclean energy☛ Babysitters☛ Vacation rentals thattake advantage of local
attractions☛ Local sports❸ Creating the foundationof lifeHelp people lead lives with safety
and security as well as convenienceand comfort.

❹ Harmonious coexistencewith local communities
and social contribution
Bring joy and meaningfulness oflife to local communities.

❺ Highly motivating
workplace environment
with a high level of job
satisfaction
Build an environment whereanyone can enjoy working.

❻ Governance
Ensure sound corporate
management.

11

Five Key Messages under IP24
 Five Key Message under IP24 "Design the Future Life"

1. Implementation of the LNG strategy
2. Evolution of TLC (Digital Marketing & Open Innovation)
3. Stepping up of DX strategy
4. Optimal allocation of management
resources
5. Strengthening of SDG initiatives
12

Implementation of the LNG strategy

13

Steady Expansion of Customer Base in Core Businesses
 Customer numbers, which underpin earnings in the core gas, CATV and Aqua businesses, will increase by 95,000
 The LP gas business was expanded to Kumamoto-shi in Kumamoto Prefecture in October 2021 and to Fukuyama-shi
in Hiroshima Prefecture in January 2022.
 Further increases in customer numbers will be made, aiming to achieve goal of 3.56 million at the end of FY2024

LP Gas business - existing area

Gas
CATV
Aqua

LP Gas business - new area

Hiroshima (January 2022)

3.56 million+40,000+34,000+3,000Net increaseof 95,000 3,194,000

Kumamoto (October 2021)

3,099,000

FY2020

FY2021

FY2024

14

New Direction in ICT Business Offering a one-stop shop for Amazon Web Services (AWS) covering all processes from consulting to design,
construction, connection, monitoring and operation, in the ICT business for corporate customers
 Already provided cloud computing support to many customers since achieving AWS certification
 Leveraging this track record and experience to begin offering AWS Solution for China Region to support use of AWS
by Japanese businesses with a local subsidiary in China from September 2021

(i) AWS China Region Adoption Support Service(ii) AWS China Region Account Creation Support Service(iii) AWS China Region Operations Management Service

AWS Ningxia Region

AWS Beijing Region

AWS Tokyo Region
AWS Osaka Region(v) AWS Connection Service
for China Regions

Customerbase
Customerbase(vi) Remote Connection Service(iv) ICP Registration
Support Service

Customerbase

Customerbase

15

Further Growth and Expansion
as an General Construction Business Operator
 Made Marco Polo, Inc., which is engaged in the large-scale repairs business in Aichi Prefecture, into a consolidated
subsidiary in April 2021
 Enhanced the structure for winning orders for major construction work in the Construction Business of theConstruction, Equipment and Real Estate Segment by making civil engineering company Nissan Kogyo andelectrical contractor Chuo Denki Koji into consolidated subsidiaries in 2019 and 2020 respectively
 Drawing on the strengths of each to create synergies, aiming for further growth and expansion as general
construction business operator
Civil
engineeringwork
Nissan Kogyo Co., Ltd.
Large-scale

repairs

Major works
in the Construction
Business
Air-

Marco Polo, Inc.

conditioning
workElectricalwork

Plumbing
work

Shizuoka Prefecture

Chuo Denki K.K.

TOKAI service area

Aiming for further growthand expansion as a general construction
business operator

16

Further Expansion of ICT Business Made Query Co., Ltd., which is engaged in the system development business, into a consolidated subsidiary in April
2021
 QUERY's strengths are its technological capabilities that can flexibly respond to customer needs and the longstanding relationships of trust with major customers, built through its numerous development and operation results
 Aiming to provide added value to customers and expand transactions by creating synergies through the combinationof QUERY's technological capabilities and relationships of trust with integration of the cloud and networking areas,
which is TOKAI's strength

M&ANetwork line services
Data center operation services
System development

Development of smartphone
and tablet applications
System integration businessWeb and DTP production
Technical staff dispatch

Create synergies by combining the strengths of both companies
Aim to increase added value provided to customers and expand transactions

17

Evolution of TLC

18

Collection and Utilization of Customer Attributes
 Collect more and more advanced attributes of customers step by step
 Make an AI-assisted forecast of customers' behavior with D-sapiens and use it to determine the targets of newservices and to approach potential customers
Collect more advanced customer
attributes data

Forecast customer behavior anddetermine targets

Customer
attributes• Preferences and interests• Forecast of hours of staying athome• Family structure• Occupation and annual income• Contract cancellation prediction• Number of transactions andfees• Address, name and date of birth

Transaction
history

Data analysis by AI

Data

Discovery of patterns

Prediction

Visualization ofpotential customers

In-depth analysis ofcustomer information

Customer understanding
and behavior prediction

Discovery of customers'
potential demand

Preferred price range andbrandsSigns of contract
cancellation, tendency tohave multiple transactions,etc.

Purchase prediction model
Contract cancellation
prediction model, etc.

Segments with highpurchase probability
Segments with highprobability of defection, etc.

Browsing
history

Customerreaction
data

Inquiry
data

Prediction
Data

Data
collection

Measures

Customer attributes, preferences and interests,
24/7 monitoring value and others

Approach to customers

Healthcare
Education

Tourism

Personal pages
on TLC

Agriculture

Data partner
collaboration

IOT data

WebsiteSales personnel

E-mailOperator

Push notifications
from the app

DM

19Stepping up of DX strategy

20

Implementation of DX Strategy
 Formulated Digital Transformation (DX) Strategy to coincide with announcement of IP24
 For the DX Strategy, fully utilize data of more than 3.2 million customers nationwide accumulated through businessactivities and ABCIR+S*
 Planning to further advance the optimization of existing business models and achieve improvement in businessefficiency and high added value in our services. Also intending to take on challenges to create new businesses.

D-sapiens

ABCIR+S
SecuritycameraNetwork

AI speaker* Term coined by combining A for AI, B for Big Data, C for Cloud, I for IoT, R for Robotics, and (+) S
for Smartphone. It is the Group’s strategy for technology innovation.

Improvingbusiness efficiency

High added value

Creating
new businesses

Increasing Productivity and Improving
Business Efficiency through theDigital Workplace

Pursuing customer understanding andimproving the customer experiencethrough D-sapiens

Providing new value throughcollaborations and co-creation
with start-ups, etc.

21

Optimal allocation of management resources

22

Optimal Allocation of Management Resourcesin Line with Plan Appropriated 16 billion yen out of the 21.8 billion yen in cash flows provided by operating activities in FY2021 forinvestments in future growth including investments in existing businesses and acquisitions of new subsidiaries
 Regarding returns to shareholders, annual dividends will be increased for the second consecutive fiscal year to 32
yen per share for sharing the results of growth with shareholders.
 Plan to continue striving for optimal allocation of management resources with a view to actively investing in growthand improving shareholder value

Shareholder return
FY2020
year-end
dividend+

FY2021interimdividend

4.1 billion yen

Improvementof shareholder
value

Investment
Futurein growthbusiness Existing businesses: 13.3 billion yen
M&A: 2.7 billion yen
growth
16.0 billion yen

Management
resources
Operating CF*: 21.8 billion yen(FY2022) 21.2 billion yen (projection)* Operating CF has been calculated in the following manner.
Operating CF = Operating profit + Depreciation – Lease payment – Tax payment

23

Strengthening of SDG initiatives

24

Carbon Neutrality VisionAnnounced TOKAI Group Carbon Neutrality Vision in May 2021

The Group will further promote the use of environmentally friendly energy equipment and also utilize renewableenergy and electric vehicles in its business activities to reduce CO2 emissions and aims to achieve carbon
neutrality by 2050

2020
▼

2030
Be proactive in reducing CO2 emissions.
However, gas will continue to play an important role for ensuringresilience in disasters, etc.

▼

2050
Achieve carbon neutrality by introducing
innovative technologies.

- Use ABCIR+S (automatic meter reading, optimization ofdelivery routes).
- Reduce CO2 emissions from offices.

Reduce CO2 from houses using gas- Promote high-efficiency gas equipment.
- Promote solar power generation systems for households.
- Promote equipment related to electrification.
- Make houses carbon neutral (ZEH, OTS).

Expand electric power business- Launch electricity retail business.
- Offer electricity and gas packages widely.
- Use renewable energy power sources.

business activities by 13,000 tons.
(Equivalent to 70% of CO2 emissions in FY2020,
which was 18,000 tons)

Promote high-efficiency gas equipment
for households, install solar power
generation systems for households,
and take other steps to reduce CO2
emissions by 170,000 tons.
(Equivalent to 50% of CO2 emissions fromhousehold gas, which is 360,000 tons)

Carbon neutrality

FY2030 targets
Reduce CO2 from business operation Reduce CO2 emissions from our own▼

25Start of Sales of Carbon Neutral Gas
 Started selling carbon neutral gas in the City Gas Business in August 2021. Carbon neutral gas achieves net zero
emissions by using the J-Credit Scheme to offset CO2 emissions
 Supporting the efforts of local governments and businesses to reduce GHG emissions through the sale of carbon
neutral gas, aiming to help local communities reduce their environmental impact and achieve more widespread useof carbon neutral gas
 Concluded a Collaboration Agreement for the Realization of Zero Carbon City with Fujieda City (Shizuoka
Prefecture), which has declared its intention to become a Zero Carbon City

J-Credit
Creator

TOKAI Group
companies

CustomerBusinesses involved in forestry
management and the installationof energy-saving equipment

Local governments andbusinesses working to
reduce their GHG emissions

Creators conductbusinesses which either
reduce GHG emissions orhelp increase the amountof GHG emissions that areabsorbed

Purchaseof credits

Sale of carbon
neutral gas

Customer offsets own
GHG emissions withcredits to "reduce"
emissions

Fujieda City, Shizuoka Prefecture
Conclusion of Collaboration Agreement for Realization of
Zero Carbon City
* Scheme under which the government certifies the amount of greenhouse gas emissions reduced
through the introduction of energy-saving devices or the use of renewable energy or the amount ofgreenhouse gas emissions absorbed through proper forest management, as “credit."- Promotion of decarbonization and energy conservation- Encouragement of widespread use of carbon neutral gas

26

Release of Carbon Neutral LPG
 In January 2022, we released carbon neutral LPG (CN-LPG)* in the LP gas business.
 As a gas retailer, we play an active role in the decarbonization efforts of the gas industry.
 We will sell it corporate clients working on decarbonization and use it in the Group's offices and plants to help promote
CN-LPG and achieve decarbonization.

CN-LPG offsetting
greenhouse gas
emissions

Wholesalers

Sales

Businesses working to
reduce their GHG emissions

TOKAI Group
companies

Net zero CO2 emissions

Internal use* LPG characterized in that greenhouse gas
emissions from its entire value chain including
production and transport for consumption are
offset by the recognized carbon credit

Customer

The Group's offices
and plants

Helping spread CN-LPG and achieve decarbonization

27

Start of Provision of TOKAI ZERO SOLAR
 Began offering TOKAI ZERO SOLAR, which allows solar power generation systems to be installed at an upfront costof ¥0, in October 2021.
 The widespread adoption of solar power generation is important to improve energy self-sufficiency and realize a lowcarbon society.
 TOKAI bears all the initial installation cost and service users benefit from lower utility bills for the duration of theservice. Another benefit to customers is that ownership of all the equipment is transferred to them free of charge at theend of the contract period and the service helps reduce CO2 emissions.

Promoting solar power generation
to reduce CO2 emissions

Powercompany

Revenue from electricity sales

Shortfall is purchasedfrom power company

Transferred free of charge
after contract period

Solar selfconsumption
Payment of service charge according
to level of self-consumption

Lower utility bills

28

Realization of Flexible Ways of Working
through Work Style Reform Introduced new ways of working, consisting mainly of teleworking, in April 2021, with the payment of work-from-homeallowance and development of the digital workplace in addition to the provision of equipment (smartphones andcomputers)
 Made steady progress towards achievement of targets of 50% office attendance rate and 40% reduction in office floorarea Progress was made in improving the operation process, including the acceleration of a shift to paperless
operation and introduction of electronic contracts, or electronic documents with electronic signatures.
 Plan to implement work style reform, aiming to realize flexible ways of working and achieve the career advancement ofdiverse human resources

Introduced teleworking from April 2021, aiming to have 50% of employees
working in the office and to reduce office floor space by 40%
Threeessential tools

Development
of digital workplace

Payment ofwork-from-homeallowance(1) Lending smartphones(2) Lending PCs(3) Free address office
Promotion of
paperless operations

Environment that permits
employees to work comfortably
and safely anytime,
anywhere, throughdigitalization
Introduction ofelectronic contracts

Implementing work style reform to realize flexible ways of working
and achieve the career advancement of diverse human resources

29

Pushing Ahead Positively with Health Management
 In March 2022, we were selected in the Health and Productivity Stock Selection jointly run by the Ministry of Economy,
Trade and Industry and the Tokyo Stock Exchange.
 We have established the TOKAI Group Health Management Charter with three pillars of safety and health, healthpromotion, and workstyle reforms to move ahead positively with groupwide health management.
 We will strive to create flexible workstyles through workstyle reforms and to build an environment where employees
can work without stress or constraints and in good health by actively encouraging them to improve their health.

TOKAI Group Health Management
Charter establishedHigh marks earned from outsiders
Selected in the Health andProductivity Stock Selection
jointly run by the Ministry of Economy,
Trade and Industry and the Tokyo
Stock Exchange

Implementing groupwide
health management

Safety andhealthHealthpromotion

Health andProductivity Stock

Working to create flexible workstyles throughworkstyle reforms and to build an environment
where employees can work without stress orconstraints and in good healthWorkstylereforms

30

Strengthening the Governance System
 Strengthened the governance system to achieve sustainable growth and improve the corporate value over the
medium to long term Established Nomination and Compensation Committee in February 2021 in addition to governance framework
already developed, to further strengthen the independence, objectivity, and accountability of the functions of theBoard of Directors
 Independent directors make up at least one third of the Board and female directors are also appointed.
Nomination andCompensation
Committee

Environmental
Management
Committee

Strengthened independence,
objectivity and accountabilityof the functions of the Boardof Directors

Investment
Committee

Strengthening theGovernance System
Business
Management
Committee

Group Compliance& Risk Management
Committee

Reviewing thedirector composition

Independent directors make up at least one third
Female directors are also appointed

31

Good Progress in Medium-Term Management Plan IP24
 We are making good progress in the Medium-Term Management Plan IP24 "Design the Future Life."
 For FY03/23, profit will decline due to the hike in LP gas purchase prices. For FY03/24 and beyond, we will restore
the upward trend in sales and profit with a view towards achieving the Medium-Term Management Plan IP24.

Operating profit: 100 million yen

Results

186

Forecast
Medium-Term Management Plan IP24

158

152

FY2021

156

165

145

FY2022

FY2023

FY202432

The performance forecasts and forward-looking statements in these materials are based on
information currently available to the Company, and include potential risks and uncertainties.
Please be aware that due to changes in a variety of factors, actual results may differ
materially from the projections and other forward-looking statements in these materials.

Please contact us with any questions regarding these materials.
Investor Relations Office
TOKAI Holdings Corporation
Hamarikyu Inter City 11th floor, 1-9-1, Kaigan, Minato-ku, Tokyo 105-0022, Japan
Phone: +81-(0)3 5404-2891
Fax: +81-(0)3-5404-2786
https://www.tokaiholdings.co.jp/english/
e-mail： overseas_IR@tokaigroup.co.jp